'Not opened up...': Piyush Goyal draws firm line on dairy in India-New Zealand FTA

India will not open up its dairy sector under any free trade agreement, Commerce and Industry Minister Piyush Goyal asserted on December 22, as India and New Zealand announced the finalisation of their bilateral trade deal.

It is to be noted that agriculture and dairy are among the contentious points in the ongoing India-US trade deal discussions. 

“We have been very sensitive to protect all the sectors, like farmers' interest in rice, wheat, dairy, soya and various other farmer products, agricultural products, which have not been opened up with any access,” Goyal said during a media briefing. He also highlighted that India's MSMEs and startups would gain significant opportunities through this agreement.

The India-New Zealand FTA offers India duty-free access to New Zealand’s market, while New Zealand will benefit from reduced tariffs on 95% of its exports. However, India has excluded its dairy sector and select farm products from the agreement.

Goyal also noted that discussions for the long-pending India-US trade deal are in an “advanced stage,” though access to agriculture remains a point of contention.

While New Zealand’s Prime Minister Christopher Luxon welcomed the agreement as a win for local employment, Foreign Affairs Minister Winston Peters termed it a “low-quality” deal and announced that his New Zealand First party would oppose it in Parliament.

Peters clarified that the opposition was not directed at India or its negotiators, but reflected differences within the ruling coalition government.

The deal now awaits parliamentary approval in New Zealand.